LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 2, 1997
         
         
      TO: Honorable Fred M. Bosse, Chair            IN RE:  House Bill No. 3338
          Committee on Land and Resource Management                              By: Hilbert
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB3338 ( Relating 
to alternative pleading to condemn.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by HB3338-As Introduced
         

Implementing the provisions of the bill would result in a 
net impact of $0 to General Revenue Related Funds through the 
biennium ending August 31, 1999.
         
The bill would make no appropriation but could provide the legal 
basis for an appropriation of funds to implement the provisions 
of the bill.

         
 
Fiscal Analysis
 
This bill would allow property owners to recover all expenses, 
including reasonable and necessary attorney's fees, in cases 
where it is found that the condemnor does not own an interest 
in property it has claimed.  
 
Methodolgy
 
The Department of Transportation anticipates that this bill 
would affect the agency most often in certain inverse condemnation 
situations.

The department estimates, based on recent experience, 
that it would be required to pay attorney's fees and other expenses 
in 10 inverse condemnation cases per year, each entailing approximately 
200 hours of attorney time at $200 per hour.  In addition to 
attorney's fees, the department expects to pay to property owners 
$15,000 in expenses per case.  Such costs would result from 
appraisal fees, expert witness fee, and other expenses.  Each 
case would therefore cost the department $55,000.
The probable fiscal implications of implementing the provisions 
of the bill during each of the first five years following passage 
is estimated as follows:
 
Five Year Impact:
 
Fiscal Year Probable           
            Savings/(Cost)                                                                                
            from State                                                                                    
            Highway Fund                                                                                  
            0006                                                                                           
       1998        ($550,000)                                                                        
       1998         (550,000)                                                                        
       2000         (550,000)                                                                        
       2001         (550,000)                                                                        
       2002         (550,000)                                                                        
 


 
         Net Impact on General Revenue Related Funds:
 
The probable fiscal implication to General Revenue related funds 
during each of the first five years is estimated as follows:
 
              Fiscal Year      Probable Net Postive/(Negative)
                               General Revenue Related Funds
                                             Funds
               1998                   $0
               1999                    0
               2000                    0
               2001                    0
               2002                    0
 
Similar annual fiscal implications would continue as long as 
the provisions of the bill are in effect.
          
This bill's cost to local governments would depend on the number 
of inverse condemnation cases which would result in an entity 
paying property owners for expenses.  The cost per case to local 
governments is expected to be similar to that estimated for 
the Department of Transportation.
          
   Source:            Agencies:   302   Office of the Attorney General
                                         304   Comptroller of Public Accounts
                                         601   Department of Transportation
                      LBB Staff:   JK ,BB ,TL